1. Understanding your Paycheck

2. What information in on a pay stub? Gross wages- how much you earn before taxes and other deductions Net wages- amount left after deductions

3. What information in on a pay stub? Payroll taxes- taken by federal and state government. Other deductions: – Local taxes – Contribution to health insurance – Retirement plans – Union dues – FICA: Federal Insurance Contribution Act- deductions to support retirement plans like Medicare and Social Security

4. Paying Your Taxes

5. How do I pay taxes? In your check, taxes are deducted You also say a sales tax every time you buy something You pay an excise tax on tobacco, alcohol, gasoline, and other luxury items You pay property taxes if you own a home

6. How do you file your income taxes? If you earn more than $4,000 a year, you have to file taxes Select an appropriate filing category – Single, head of house, married and filing jointly, or married filing separately Select the appropriate form – 1040EZ, 1040

7. What are my deductions? An employer provides a W-2 stating earnings and deductions. (if your employer does not give you one by January 31 st, report them to the IRS) Possible Deductions: – $ in a IRA (individual retirement plan) – Medical expenses more that 7.5% of your income – Charitable donations – Work related expenses – Interest paid – Children or other dependents

8. How do I send in my taxes? You can mail a paper copy Send it electronically They must be postmarked by midnight April 15 th !!!

9. What are ways to invest your money? Before you invest  BUDGET your money! Checking Account: will need a SSN, ID, contact info, & a minimum deposit. Be aware of: fees, interest rates, check costs, check-writing restrictions, overdraft policies, & a minimum balance. May come with a debit card. Savings Account: offers low interest rate but is the safest form of investment, more difficult to reach than a checking account, low minimum balance required Money Market Account: like a savings account, but with a higher interest rate, the ability to write a few checks/month, and a required minimum balance Certificate of Deposit: offers a set interest rate (usually higher) for a set time period, cannot touch money for a certain amount of time without penalties

10. Investing Your Money (continued)… Bonds: you are loaning money to a corporation or the government, earns a specific amount of interest over a certain amount of time (ex. a 10- year, $100 bond guaranteed to pay 6%), good when you don’t need the money right away Stock Market: a stock is a share of a company; you can pay a price & sell it for a profit; can be dangerous but can make the most money Mutual Funds: a combination of the above funds, it diversifies your investment

11. Credit: What is it? Credit is using someone else’s money (borrowing, charging, or getting a loan) Having a good credit history means lower interest rates & higher credit limits in the future The “Three C’s of Credit”: 1.Character, measured by your past record of paying bills on times 2.Capacity, determined by whether you have steady employment with enough income to repay loans 3.Capital, which includes money saved, investments, and property you own

12. How can I build my credit? Get a debit card and only use what you have in your account Get a store credit card, then pay everything back immediately and do not go over your limit Take out a small loan (like a student loan) and pay it back on time Don’t check your credit score too often; this can often hurt your score

13. How do I check my credit score? Use myFico, Equifax, TransUnion, or Experian. TrueLink combines all three (access at TrueCredit.com). Check your score every year! Your credit score comes from four areas: Employment/ Income, Housing, Assets, & your Credit History. If there are mistakes, fix them immediately! Credit ranges from 300-850. The average credit score is 629. The best scores are 700-760. It is important to manage your credit score so you are not denied loans. Cancelling a credit card may hurt your chances at another credit card if your credit score is not very good.

14. Avoiding 6 Common Credit Card Errors 1.Pay more than the minimum, because interest rates will add to your bill. 2.Don’t use a CC for everything in case you can’t pay it all back. 3.Rewards aren’t that great – if you owe money with 18% interest, that’s not better than a 2% reward. 4.Avoid multiple cards and the temptation they bring. 5.Don’t take cash advances – too high of interest!! 6.Don’t use a CC to pay medical bills. You can make a deal with the hospital instead of taking on the interest. 7.Don’t ignore your debt!